What will you do with your extra after-tax dollars?
Cut your tax rate to just 15.5% on your real estate earnings on net income up to $500K.
As a Realtor® you probably already know that RECO won’t let you incorporate your business unless you set up a brokerage. If you earn over $136,270 this leaves you stranded paying taxes in Ontario, at a rate of up to 46.4%.
But what if there was an easy way to incorporate your business and pay tax at just 15.5% on your net income? And on top of that, get access to valuable tax planning strategies that could save you thousands more each year?
With expert help and ongoing support, Realty Point makes it all possible.
Get Access To Massive Tax Savings
INCOME DEFERRAL: A Powerful Tax Strategy for Real Estate Brokers
Income Deferral is a powerful tax strategy that can help you save significantly on your taxes.
As a real estate professional you’re forced to collect income on your sales as a self-employed individual. As the market fluctuates you might earn a high income in one year and a much lower income the next. If you earn over $136,270 in any one year you’re forced to pay over almost HALF of every extra dollar you earn in tax – whether or not you need the income at that time.
Incorporation opens up the option to delay receiving that personal income. You can retain funds that you don’t need in your company, and you won’t pay any additional tax until you draw out those funds as a salary or dividend.
Tax deferral is even more beneficial for real estate brokers than other business owners, because of the cyclical nature of your business. In high-income years the company can retain your excess income, paying out only what you and your family need. Then in quiet years, when you need the funds, you can draw them out and generally pay a much lower rate of personal tax.
Split your income with family, not the Canada Revenue Agency!
Redirect your income in the most tax-efficient way
If you support others, incorporating your business also opens up another valuable tax planning strategy. Even if you need all your income each year for your family’s day-to-day needs, you can still use your corporation to make major tax savings.
Here’s how it works. Instead of receiving all your income as an individual, and paying up to the highest rate of tax on it, you can split that income by paying it out as dividends to other members of your family (who must be aged over 18). As long as they pay a lower rate of tax than you, then you’ll pay less tax overall on the income as a family unit.
Each year you can simply collect your earnings in your corporation, and then distribute it to other family members in the most tax-efficient way.
Realty Point. You Sell Real Estate. We Take Care of The Rest.